Fiji’s central bank records $42m net profit

The Reserve Bank of Fiji. Picture: FILE

Fiji’s central bank has reported a record high net profit of $42.0 million for the 2021-2022 financial year despite challenging global financial markets.

According to the Reserve Bank of Fiji, the out-turn in the 2021-2022 financial year was underpinned by higher interest income from domestic bonds and increased numismatic sales, unlike previous years where interest income from foreign reserves contributed the bulk of the bank’s revenue.

It stated that as required under the RBF Act, a transfer of $44.4million would be made to the Government, inclusive of $3.4million being one-fifth of the Revaluation Reserve Account – foreign currency, and a net transfer of $1.0 million to the general reserves.

This compares with a transfer of $32.9 million to the Government for the previous financial year.

RBF Governor and board chairperson Ariff Ali said despite the global economic turbulence caused by the Russia-Ukraine war and the uncommonly higher prices of commodities affecting the Fijian economy, the bank achieved its key objectives.

He said at the end of July 2022, foreign reserves was adequate at $3.6billion, equivalent to 8.4 months of retained imports cover.

“The inflation rate was 5.2 per cent in July, primarily influenced by imported (12.3 per cent) over domestic (3.6 per cent) inflation, as external pressures significantly increased food and fuel prices,” Mr Ali said.

“Fiji’s financial system remained resilient, with total gross assets of $26.7billion as at July 31, 2022.”

Mr Ali said while risks to the domestic growth outlook remained, economic recovery had continued to strengthen, largely insulated by the revival of the tourism industry and its positive spill-over effects onto other sectors of the economy.

“With a stable outlook for foreign reserves and inflation, the bank is committed to maintaining an accommodative monetary policy stance to foster conducive macroeconomic conditions for Fiji’s economic recovery.”

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